I do a lot of prevailing wage defense and am always interested in developments in this nuanced area of wage-hour law. I have noticed a trend lately that States (e.g. New York have been legislating into effect laws that impose almost strict liability for contractors if their subcontractors do not pay prevailing wage (“PW”). Well, Illinois has now joined this “movement.” On June 10, 2022, the Governor signed amendments to the Illinois Wage Payment and Collection Act that now allows workers of subcontractors to go upstream against the general contractors “GCs”) for wages. The law became effective for contracts executed after July 1, 2022.
The amendments apply to contractors who have contracted with the property owner for the “erection, construction, alteration, or repair of a building, structure, or other private work in the State where the aggregate cost of the Project exceeds $20,000.” However, the law allows an escape clause for contractors that are signed up with a labor union so, implicitly or explicitly, the law will act as an organizing tool for the building trade unions.
Under the law, a worker must give a ten-day notice to his employer, i.e. the subcontractor and the general contractor of the claimed amount of wages and must give specifics, prior to commencing a civil action for the wages. This will give a period of time for a settlement or resolution to be effected. The end result, though, is that an employer (the GC) may be liable for “unpaid wages or fringe or...
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